Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (27536)	4/20/1999 1:30:00 AM
From: dday	Read Replies (1) \| Respond to of 152472

The AOL v Q debate seems to be based more on how you choose to value companies. By traditional fundamental measurements such as PSR, PE etc., AOL is off the charts and has been for quite some time. One could argue that the Q is a bit pricey as well. However, the other side to the debate is to look at the "Gorilla" type evaluation that is so much in vogue today. Using a discounted future earnings model of some sort or simply summing the forseeable future earnings and discounting back, one can make a case that both are somewhat undervalued. The Q more so IMHO. Of course, the danger in this scenario is that one needs an unbreakable crystal ball...........I tossed mine many years ago along with the next ten years of Wall Street Journals. The upside is that you can justify investments in such fundamentally overvalued situations such as Mister Softee, Cisco etc. These are situations that 'value' oriented investors with a statistical bent may often miss. ( I know I did) In sum, I can understand and appreciate both points of view. That is, after all, what makes a market. For the record, I own both stocks but had the good fortune of lightening up the AOL this past week. The Q will only be bought and not sold. It is going much much higher IMHO. From my own personal viewpoint, which has a 10 year time horizon affixed to it, I think it would be foolish to sell the one company with the strongest 'gorilla' attributes that I can find. I personally view this 'instant correction' as an opportunity.